Question about CIS & VAT

clegganator Registered Posts: 184 ? ? ?
Hi All

So, I'm trying to prepare the accounts for a VAT registered sole trader working under CIS. He is a nightmare to get any decent paperwork from and I'm trying to work backwards from his bank statements.

What is the best formula to work backwards & get VAT & CIS and the gross amount paid? Is VAT worked out before CIS is deducted?

A B (VAT) C (CIS) D (Gross) E (Error checking)
Net =ROUND(A1*7/47, 2) =ROUND(D2*0.2, 2) =A1+B2 =IF(A1=(D1-C1+B1), "OK", "ERROR")

Would this work and be accurate and would the formula in E1 provide an adequate check? If not can someone suggest an alternative? I will try and explain more if this doesn't make sense...


  • snowmarauder
    snowmarauder Registered Posts: 99 ? ? ?
    Hi ya, quite easy when you get your head around it.

    labour+materials(if any) = nett + vat + gross

    labour nett - 20%. Take the 20% amount off the gross. This is paid to the sub. The 20% goes to HMRC paid by the customer.
    Check nett labour - 20% + materials + original vat = gross paid

    100+100=200+35=235-20% of labour(£20)=215

    100-20%= (100-20=)180+200+35=215

    Hope this sounds ok. If its straight labour then hope its obvious just 100-20%=80+vat on the 100= gross

    100-20%= 100-20=80+17.5=97.50 20 paid direct from customer to hmrc
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